The Golden Arches in India

Presentated By : Arifa Akhtar Zia Sajid

1211270

MC DONALDS
McDonalds is one of the best known brand worldwide. Founded in 1940 It is worlds leading food service provider with 33000 restaurants serving in 118 countries serving 64 million customers each day.

Franchise Model Only 15% of the total number of restaurants are owned by the Company

MC DONALDS India
McDonalds entered India in 1996. 50:50 Joined ventures Amit Jatia(Hardcastle Restaurants) owns and operate operations in West & South India. Vikram Bakshi(Connaught Plaza Restaurants), owns and operates McDonald's in North and East India 250 restaurants across the country

General Environment of Fast Food Industry in India

Socio Cultural 80% Hindu 12% Musim 40% vegetarian

Fast Food Industry

Political Democracy Large Bureaucracy Socialist Mind Set

Five forces Model of Fast Food Industry in India

Substitute Products
Burger King, KFC, Indian Cuisine, Indian local shops, Indian Vegetarian restaurants

Threat-HIGH

Suppliers of Key Inputs

Various Suppliers

Rivalry Among Competing Sellers

Top Brands Competitors Same criteria of food industry Competition-HIGH

Buyers
One price strategy Quality of food Bargaining Power LOW

Bargaining Power- LOW

Potential New Entrants Entry Barrier

Threat -HIGH

Strategic Group Map of Fast Food Industry in India

High

Price

National Fast food Chain Nirulas, Darshini

Local Fast-food E.g- Dhabas, Road Side Restaurants

International Fast food ChainMcDonalds, KFC, Baskin-R Dominos

Low Low

Variety in Food Menu

High

Strategic & Management issues that McDonalds had to consider to enter into India

Potentially large consumer Market 300 Million Wide Range of economic reforms -1991 Entry of MNCs The environment factors in India Indian customers taste, Product Development, Supply Chain Arrangement

McDonald's Entry in India Think global, act local McDonald's India as a wholly owned subsidiary that is known as McDonald's India Pvt Ltd. Two joint venture on a 50:50 basis in Mumbai & Delhi.

Challenges of McDonald's In India To avoid hurting religious sensibilities of Indian People To avoid political confrontation with Indian government and political activites

Strategies of McDonald's Certain issues McDonald's consider while entering in Indian market: Research and Development: Different types of Language Religious Sensitiveness Vegetarian & Non- Vegetarian

Strategies of McDonald's To attract customer change their core product name Big Mac, with the Maharaja Mac. Change latter to avoid offending the sensibilites of Hindus & Muslims. According to the vegetarian & non-vegetarian they separate their menu.

Strategies Of McDonald's Low price than Sri Lanka & Pakistan and providing complimentary gifts. McDonald's often launched massive promotional scheme in collaborating with the media partner.

Internal Analysis of McDonalds' India

Tangible Resources Financial Resources Physical Resources Technological Resources Intangible Resources Human Resources Innovation Resources Reputational Resources

Capabilities Distribution Marketing Research & Development

Core Competency Analysis

Rare Valuable Costly to Imitate Nonsubstitutable

Supply Chain

Yes

Yes

Yes

Yes

Distribution

Yes

Yes

Yes

No

R &D

Yes

Yes

Yes

No

SWOT ANALYSIS
STRENGHTS
Strong brand recognition PLEASE ADD UR POINTS Strongest Presence Customer Intimacy Product innovation Supply Chain

OPPORTUNITIES
Expand into maximum cities Entry into breakfast category Acquisition of other restaurants

WEAKNESS
High overall costs than rivals Adaptation time period Huge Investment

THREATS
Changing customer lifestyle Increase in competition Growing health conscious population

Functional-Level Strategies Building Blocks: Efficiency Quality Innovation Customer Responsiveness

Achieving Superior Efficiency Manufacturing Mass Customization Low cost and economies of scale Flexible Manufacturing Technology

Achieving Superior Efficiency

Marketing & Efficiency ( Pricing, Promotion, Advertising, Market Information for Product Design, Distribution &Customer Loyalty)

Material Management and Supply Chain, JIT & efficiency Human Resource Strategy & Efficiency

Functional-Level Strategies Achieving Superior Quality Achieving Superior Innovation Achieving Superior Responsiveness to customer

Things are becoming global in nature

McDonalds had started using India as an export base for cheese, lettuce and other product that went into its burgers. Exports had already begun to Sri lanka, HongKong and the Middle east. The company was also trying to export its products to Europe, Russia and Southeast Asia. It shows that when you set up a supply chain in strategic location it can service other countries as well.

Recommendation
In terms of innovation, it is a continuous process and McDonalds Corporation India is giving their maximum effort on it. So it is a important factor for McDonalds to go for continuous innovation.